Dollar Weakness Boosts Gold as Fed Rate Cut Hopes Rise

Gold prices have surged in the international market as the value of the U.S. dollar weakens and expectations grow that the Federal Reserve will not raise interest rates next month.

At 4:32 p.m. Bangladesh time on Monday (August 17), spot gold prices rose 0.5% to $4,398.58 per ounce, reaching its highest level in more than two months last week.

Ole Hansen, head of Commodity Strategy at Saxo Bank, noted that the decline in inflation and employment data has reduced the risk of another interest-rate hike, making it possible for the Fed to cut rates instead.

The dollar's recent strength has been followed by signs of it moving lower, creating favorable conditions for gold prices to gain momentum.

In addition to gold, other precious metals have also seen increases: silver rose 1.5% to $65.61 per ounce, platinum increased 0.7% to $1,759.72 per ounce, and palladium prices rose 1.6% to $1,333.25 per ounce.